What is Renters Insurance

What is renters insurance?

Renters insurance is coverage for personal possessions and liability coverage. Renters insurance is divided into two parts, these are general coverage and liability coverage. The general coverage provides coverage for items stolen or damaged while the liability coverage gives you protection against financial loss resulting from any injury to a visitor to your premises. This often includes the visitor’s medical expenses, plus legal and other costs associated with a claim when a person is sued. Of course this will depend on the type of policy you have. Ask your insurance provider for an in-depth description of what coverage is best for you.

Two of every three apartment renter lacks insurance coverage, although 50% of them have in excess of $10,000 worth of valuables. Unfortunately many of these people are misinformed as to the costs this entails or they have no real knowledge of what renters insurance really is. Renters insurance is not expensive, in actual fact you can get renters insurance for approximately $100 a year. Less than you expected?

One in three people surveyed by Allstate insurance thought renters insurance costs 15 times more than it really does. Perchance that is why many people have none. But reality states that renters are more likely to be robbed than homeowners. Replacing stolen, burnt etc items is not an inexpensive thing to do. While landlords have property insurance for the construction and grounds, your personal assets are not their concern. If you suffer any loss through fire, flood and so forth, you main gain a sympathetic ear but that’s all.

Unfortunately numerous renters have preconceived ideas that the landlord’s building insurance covers everything. This includes legal costs, coverage for theft and so forth. But this is not true. In actual fact, the landlord’s insurance is relatively limited in reference to damage to the actual structure of the building and liability coverage too common areas. Your landlord’s insurance does not cover your $4,000 stereo, $3,000 sofa or your antique collection. It covers no personal possessions, or any damage which you may accidentally do to your landlord’s building. You are solely responsible for your own possessions and the basic care of the apartment, condominium, or rented house.

Renters insurance covers your possessions from theft and vandalism, damage from specific named catastrophes such as fire, windstorms etc. If any damage to the premises makes it impossible for you to remain there, a plethora of renters insurance policies provide temporary relocation living expenses while repairs are carried out. Your personal possessions will be covered while you are away from the premises as well. This includes items within your car or items you take with you while on vacation. Policies cover what is deemed as insured risks, these are specifically names within your policy. Insured risks includes flood and earthquake damage. Remember that these are considered to be separate risks so they shall require separate policies. As you can see from the above information, renters insurance is a must have.

Don’t talk yourself out of renters insurance. When one adds up the initial outlay of replacing DVD collections, CD’s, computers, televisions, beds, sofas, dining table, white goods and so forth, they will soon see how the costs add up. Renters insurance is a wise investment.